SB3168 97TH GENERAL ASSEMBLY

LRB097 19119 EFG 64360 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3168

Introduced 2/1/2012, by Sen. Terry Link

SYNOPSIS AS INTRODUCED:

40 ILCS 5/14-111	from Ch. 108 1/2, par. 14-111
105 ILCS 5/24-1	from Ch. 122, par. 24-1

Amends the State Employees Article of the Illinois Pension Code. Provides that an annuitant who accepts temporary employment from a department for total compensation of less than $30,000 during a calendar year is not considered to make a re-entry after retirement. Amends the School Code. Prohibits a school board from hiring multiple people who are retired and are receiving a retirement annuity under the Teachers' Retirement System of the State of Illinois in order to fill, as a group, a teaching position that would ordinarily be occupied by a single, full-time teacher. Provides that this prohibition does not apply if the school board determines that there is a subject or administrative position shortage that would require action, in which case the school board must apply for an exemption under a Section of the Illinois Pension Code relating to returning to teaching in a subject shortage area. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employees.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 14-111 as follows:

(40 ILCS 5/14-111) (from Ch. 108 1/2, par. 14-111)

Sec. 14-111. Re-entry after After retirement.

(a) An annuitant who re-enters the service of a department and receives compensation on a regular payroll shall receive no payments of the retirement annuity during the time he is so employed, with the following exceptions:

(1) An annuitant who is employed by a department while he or she is a continuing participant in the General Assembly Retirement System under Sections 2-117.1 and 14-105.4 will not be considered to have made a re-entry after retirement within the meaning of this Section for the duration of such continuing participation. Any person who is a continuing participant under Sections 2-117.1 and 14-105.4 on the effective date of this amendatory Act of 1991 and whose retirement annuity has been suspended under this Section shall be entitled to receive from the System a sum equal to the annuity payments that have been withheld under this Section, and shall receive the benefit of this amendment without regard to Section 1-103.1.

(2) An annuitant who accepts temporary employment from such a department (i) for a period not exceeding 75 working days in any calendar year or (ii) for total compensation of less than $30,000 during a calendar year is not considered to make a re-entry after retirement within the meaning of this Section. Any part of a day on temporary employment is considered a full day of employment.

(b) If such person re-enters the service of a department, not as a temporary employee, contributions to the system shall begin as of the date of re-employment and additional creditable service shall begin to accrue. He shall assume the status of a member entitled to all rights and privileges in the system, including death and disability benefits, excluding a refund of contributions.

Upon subsequent retirement, his retirement annuity shall consist of:

(1) the amounts of the annuities terminated by re-entry into service; and

(2) the amount of the additional retirement annuity earned by the member during the period of additional membership service which shall not be subject to reversionary annuity if any.

The total retirement annuity shall not, however, exceed the maximum applicable to the member at the time of original retirement. In the computation of any such retirement annuity, the time that the member was on retirement shall not interrupt the continuity of service for the computation of final average compensation and the additional membership service shall be considered, together with service rendered before the previous retirement, in establishing final average compensation.

A person who re-enters the service of a department within 3 years after retiring may qualify to have the retirement annuity computed as though the member had not previously retired by paying to the System, within 5 years after re-entry and prior to subsequent retirement, in a lump sum or in installment payments in accordance with such rules as may be adopted by the Board, an amount equal to all retirement payments received, including any payments received in accordance with subsection (c) or (d) of Section 14-130, plus regular interest from the date retirement payments were suspended to the date of repayment.

(Source: P.A. 86-1488; 87-794.)

Section 10. The School Code is amended by changing Section 24-1 as follows:

(105 ILCS 5/24-1) (from Ch. 122, par. 24-1)

Sec. 24-1. Appointment - Salaries - Payment - School month - School term.) School boards shall appoint all teachers, determine qualifications of employment and fix the amount of their salaries subject to limitation set forth in this Act. They shall pay the wages of teachers monthly, subject, however, to the provisions of Section 24-21. The school month shall be the same as the calendar month but by resolution the school board may adopt for its use a month of 20 days, including holidays. The school term shall consist of at least the minimum number of pupil attendance days required by Section 10-19, any additional legal school holidays, days of teachers' institutes, or equivalent professional educational experiences, and one or two days at the beginning of the school term when used as a teachers' workshop.

A school board is prohibited from hiring multiple people who are retired and are receiving a retirement annuity under the Teachers' Retirement System of the State of Illinois in order to fill, as a group, a teaching position that would ordinarily be occupied by a single, full-time teacher. However, this prohibition does not apply if the school board determines that there is a subject or administrative position shortage that would require action, in which case the school board must apply for an exemption under Section 16-150.1 of the Illinois Pension Code.

(Source: P.A. 80-249.)

Section 99. Effective date. This Act takes effect upon becoming law.